DUTTAGUPTA, RUPA; PANAGARIYA, ARVIND - In: Economics and Politics 19 (2007) 2, pp. 169-190
Incorporating an intermediate input into a simple small-union general-equilibrium model, this paper first develops the welfare economics of preferential trading under the rules of origin (ROO) and then demonstrates that ROOs can improve the political viability of Free Trade Agreements (FTAs)....